Prepaid e-commerce orders rise to 41% as order volumes grow 13.5% YoY: Report

Indian e-commerce showed signs of maturity in 2025, with steadier demand patterns, faster deliveries beyond major cities and rising consumer trust, according to an analysis of industry data.

Data from logistics technology firm ClickPost, covering more than 635 million orders processed between January 1, 2024, and November 30, 2025, recorded order volumes growing 13.5% year-on-year, while average order values rose 21%. The analysis suggests online shopping is increasingly functioning as everyday infrastructure rather than being driven mainly by sale events.

The share of prepaid orders increased to 41% in 2025 from 32% a year earlier, pointing to higher confidence among shoppers across regions. Metro areas recorded a prepaid adoption rate of 46%, while Tier II cities showed the fastest growth, reaching 40%. Tier III markets, where cash-on-delivery has traditionally dominated, still saw prepaid orders account for 34.5%.

Average order values rose alongside this shift, as consumers appeared more willing to spend upfront when delivery outcomes were predictable.

The data also showed a change in shopping patterns. Mondays emerged as the biggest day for average order volumes, indicating habit-driven consumption rather than event-led buying. Overall order volumes rose 13.5% in 2025, with demand receiving a boost after the rollout of GST 2.0 on September 22, which reduced tax rates on electronics, appliances and fashion. Festive demand was estimated to be 23% to 25% higher than the previous year.

Delivery performance improved notably outside major cities. Tier III deliveries became nearly 29% faster year-on-year, compared with a 7.1% improvement in Tier I markets. Tier II and Tier III regions together accounted for more than half of all orders, narrowing the gap in service levels between metros and smaller towns.

Reliability indicators also improved. On-time delivery rates rose to 36% in 2025 from 28% in 2024, meaning about one in three orders arrived exactly as promised. Delivery-related issues declined by around 4% from the previous year.

Return rates fell sharply, dropping from nearly 29% in 2024 to under 22% in 2025. The most common reasons for returns continued to be customer change of mind, size or fit issues, and products not matching descriptions.

The ClickPost analysis is based on 635.22 million orders processed over 23 months and covers a wide range of categories and geographies. While it represents only part of India’s e-commerce market, the data offers insight into broader trends shaping the sector.

Together, the figures suggest that Indian e-commerce in 2025 grew not only in scale but also in predictability, with faster deliveries, fewer returns and higher prepaid adoption reflecting a more stable and trusted system.